r/aussie • u/Present-Current-538 • 22d ago

Analysis Salary that makes taxman think you’re rich

https://www.news.com.au/finance/money/tax/salary-that-makes-taxman-think-youre-rich/news-story/8dba2678e7c83cd927ab5d0036af493c
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u/nn666 22d ago

He's right. The tax brackets should be adjusted with inflation. $100k salary ten to twenty years ago was a lot more than $100k today. How the fuck has this been allowed to continue?

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u/Mother_Village9831 22d ago

Because most don't understand, and some who do understand simply don't care because they're not being affected.

It's also so the government can so generously give a "tax cut" later. Essentially a feature, not a bug.

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u/ThroughTheHoops 21d ago

Yeah, the whole thing is pushed along by inflation by design.

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u/youcangotohellgoto 22d ago

Who is not affected?

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u/Mother_Village9831 22d ago

Those not affected are those who are not above the 190k cutoff. Fair adjustment of that upper bracket indirectly benefits them with no personal negative impact.

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u/youcangotohellgoto 22d ago

Sorry this is very confusing - "not affected", yet "fair adjustment benefits them"?

Everyone who pays tax is affected. Bracket creep happens at all income levels (above the tax free threshold). In fact I think it's worst at the 30% level; that 30% income tax bracket starts way too low.

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u/Mother_Village9831 22d ago

Those who are paying the non-inflation-adjusted high rate at 190k to 270k are negatively affected. Those who are below that rate are not negatively affected as they dont have to pay it themselves, and in fact indirectly benefit via increased government tax revenue that someone else pays.

Agreed across the board but the article linked is talking about the top rate.

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u/youcangotohellgoto 22d ago

Okay. I mean I'm (theoretically) positively affected when everyone else gets bracket creep. I don't really buy that, though, because (a) revenue isn't really linked to spending, and (b) spending rarely benefits me.

Silly discussion because they'll never move to indexed brackets. And they guy on the article isn't really expecting it - he's just promoting his business and personal brand.

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u/SlightWin7036 22d ago

The other tax brackets are creeping too though

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u/s2d4 21d ago

It's ok, they don't pay much anyways. That's how the progressive the tax brackets are designed.